Currently, Qatar and Kuwait have imposed a temporary ban on oil or Qatar exporting from the Red Sea and Sea of Aden. due to which there are chances of increasing the prices of oil and gas in China, India, Korea, Japan, and other countries of Europe. Most of the exports from middle to middle Eastern countries are to China, India, Japan, the EU, and the US and now the US’s Oil and LNG Gas reserves have almost been exhausted. And the Red Sea is being said to be a threat not only to Qatar, Kuwait, and Saudi Arabia but also to Russian and Iranian exports. The total exports of Qatar and Kuwait constitute almost 50% of the world’s exports, due to which there can be a boom in the oil, gas and energy sectors. Because for now there is no reserve for the US and Europe to replenish the global oil and gas supply. it seems that in the future the prices of US LNG and Gasoline can surge which will increase energy consumption in 50% of sectors of the world.
Why do Qatar and Kuwait impact the Economies of Europe, Indo-Pacific, America, and Australia?
Whereas the US and China have close alternative options like Iran, Russia, and the Middle East, it will be a bit difficult now to have an alternative to Europe, Japan, South Korea, and Indo-Pacific countries. Because US sanctions are still imposed on Iran, Russia, Venezuela, Syria, Iraq, and Yemen, other countries cannot import Oil, Gas, and Energy without US permission. In this way, it has become difficult for European, Middle Eastern, Russian, OPEC, and American companies to cross oil or gas tankers through the Red Sea and Suez Canal. The presence of the US Army in Kuwait, Qatar, UAE, Saudi Arabia, Bahrain, and Oman in the Middle East poses a threat to business, trade, exports, or ships in the Red Sea. However, there is no option left for Europe and Middle Eastern countries as to how to protect oil, gas, and good ships. As long as US army bases remain present in the Middle East and Israel continues to fight the Gaza war, Houthi, Iran, and Yemen are a big threat to the Global Trade Route. There is no option left for the US except Qatar, Kuwait, Russia, and Saudi Arabia and if these countries also join hands with Iran then the US can also impose sanctions on them and this will cause tension and inflation in the world economy. Actually, the US has imposed sanctions on many countries, so US will be difficult for it to buy oil and gas.